Chapter 5

Question 1

Logistics encompasses the acquisition, accounting, sustainment, and disposition of assets within the Department of the Navy.

Answer 1

NAVMEDLOGCOM works to ensure proper fiscal administration by directives, principles, and policies prescribed by the Comptroller of the Navy, with the ultimate responsibility resting on each Commanding Officer.

Question 2

ORGANIZATIONAL STRUCTURE
The Chief, Bureau of Medicine and Surgery (BUMED) established a standard organizational structure for Medical Logistics Departments at all Naval Medical and Dental activities with logistics responsibilities.

Answer 2

The key functional areas within the organization are:
Purchasing and contracting
Materiel receipt, storage, and issue
Supply inventory management
Equipment Management Division
Biomedical Equipment Maintenance Division
Central processing and distribution
Healthcare service contracting

Question 3

The Defense Logistics Agency (DLA), via the Federal Supply System, maintains centralized inventory management and physical distribution of depot and vendor medical/dental materiel to Naval MTFs/DTFs worldwide

Answer 3


Technical Review: This division screens all requisitions to verify that items are available from a mandatory government source of supply or assist in determining commercial sources of supply. This section maintains vendor catalogs and Federal Supply Schedule (FSS) information.

Question 4

Purchasing: In this division, commercial procurement actions take place. The staff reviews purchase requests and determines the type and method of procurement.

Answer 4


Stock Control: This division is responsible for the inventory management aspect of the materiel held in the warehouse or purchased for direct issue to a customer. Receipt and issue documents are processed here.

Question 5

Equipment Management: This division administers the command’s property utilization and disposal program. Guidance on the acquisition, accounting, and survey of equipment is done here. It identifies and accounts for plant property and minor medical and non-medical equipment within the command’s control.

Answer 5


Central Supply: This division plans and directs operations necessary to order and receive materiel for working stock supplies, or PAR levels, which are predetermined stock levels maintained in the customer’s working space based on established usage. Most central supply areas issue supplies to authorized outpatients who have a prescription for the materiel, i.e. dressings.

Question 6

NAVAL SUPPLY SYSTEMS COMMAND (NAVSUP) MANUAL, NAVSUP P-485:

• Volume I: Naval Supply Procedures, Afloat
• Volume II: Naval Supply Procedures, Supply Appendices
• Volume III: Naval Supply Procedures, Ashore

Answer 6

The NAVSUP P-409 was published as a handy reference for personnel responsible for originating and processing MILSTRIP/ MILSTRAP documents. This small booklet contains common definitions, coding structures, and abbreviated code definitions used on a day-to-day basis.

Question 7

The P-5132 is available via the NAVMEDLOGCOM homepage. It reiterates Department of the Navy policy and provides equipment management procedures to include budgeting, funding, acquisition, use, maintenance, repair, redistribution, and disposal of equipment

Answer 7

TERMINOLOGY:

Procurement: The act of obtaining materials or services.

Contracting Authority: Refers to the dollar limitation and acquisition methods the command and purchasing agents are restricted to when placing government orders.

Commitment: When appropriated funds have been approved and set aside by the fiscal officer for acquisition of goods and/or services.

Obligation: When a qualified purchasing agent enters into a contractual agreement thereby obligating the Government with a vendor for goods and/or services.

Question 8

Unauthorized Commitment: When a government representative, lacking the authority to enter into a contract on behalf of the government, enters into an agreement with a vendor for goods and/or services. This person may be liable for paying for those goods and/or services.

Answer 8

Micro-Purchase: An acquisition of authorized supplies or services that do not exceed the current competitive threshold of $3000 (Micro-purchases are not required to be placed with a small business vendor.)

Question 9

Federal Acquisition Regulation (FAR): The primary regulation used by all Federal Executive agencies in their acquisition of supplies and services with appropriated funds

Answer 9

Defense FAR Supplement (DFARS): Regulations providing supplemental guidance to the Federal Acquisition Regulation for DoD activities.

Question 10

Requisition: An order from an activity that is requesting material or services from another activity.

Answer 10

Bulk Stock: Material in full, unbroken containers available for future use.

Question 11

Reserve Stock: Items on hand and available for issue for a specific purpose, not for general use (for example, decontamination supplies).

Answer 11

Standard Stock: Material under the control of an inventory manager and identified by a National Item Identification Number (NIIN).

Question 12

The operating budget is the annual budget of an activity and is assigned by the Chief of Naval Operations (CNO), Fiscal Management Division, to major claimants.

Answer 12

Funds are distributed as operating targets or OPTARs which are generally apportioned in four equal quarterly divisions that represent the maximum amount that can be spent for each quarter of the FY.

Question 13

The Federal Supply Classification (FSC) is made up of 2 two-digit numeric codes: the federal supply group and the federal supply class.

Answer 13

The federal supply group identifies, by title, the commodity area covered by the classes within each group.

Question 14

The following is an example of the 6500 series Federal Supply Group:

6508 Medicated Cosmetics and Toiletries

6509 Drugs and Biologicals, Veterinary Use

6510 Surgical Dressing Materials

6532 Hospital and Surgical Clothing and Related Special Purpose Items

6540 Ophthalmic Instruments, Equipment, and Supplies

Answer 14

6515 Medical and Surgical Instruments, Equipment, and Supplies

6520 Dental Instruments, Equipment, and Supplies

6525 Imaging Equipment and Supplies: Medical, Dental, Veterinary

6530 Hospital Furniture, Equipment, Utensils, and Supplies
Substances, Reagents, Test Kits and Sets
6545 Replenishable Field Medical Sets, Kits, and Outfits

Question 15

13-digit stock number referred to as National Stock Number (NSN)

Answer 15

The NSN for an item of supply consists of a four-digit federal supply classification (FSC group and class)

Question 16

a nine-digit national item identification number (NIIN) EX: -00-1234567

Answer 16

The NIIN consists of a two-digit national codification bureau (NCB) code EX: -00-

Question 17

An example NSN is: 6515 -00- 123-4567
| | |
FSC NCB NIIN

Answer 17

In expressing the supply level of any stock item, four measurements are used: operating level, safety level, storage objective, and requisitioning objective.

Question 18

Operating Level: This measurement indicates the quantity of materiel required to sustain operations during the interval between arrival of successive replenishment shipments, normally seven days of supply. The operating level should be based upon the length of the replenishment cycle.

Answer 18

Safety Level: This measurement indicates the quantity of an item, over and above the operating level, that should be maintained to ensure that operations will continue if replenishment supplies are not received on time, or if there is an unpredictably heavy demand for supplies, generally 14 days of supply.

Question 19

Stockage Objective: This measurement indicates the minimum quantity of a stock item that is required to support current operations. It is the sum of the operating level and the safety level.

Answer 19

Requisitioning Objective: This measurement indicates the maximum quantity of a stock item that should be kept on hand and on order to support operations. It is the sum of the operating and safety levels (a.k.a. stockage objective) and the quantity of an item that will be consumed in the interval between the submission of a requisition and the arrival of the supplies

Question 20

SAMS (SNAP Automated Medical System) is the current approved shipboard computer program used to track all aspects of medical supply.

Answer 20

Re-Order Point (ROP): The level at which a replenishment action is indicated. If the on-hand quantity plus the quantity due-in is less than the re-order point, a replenishment action is indicated.

Question 21

DD Form 1348— This form is used to order standard stock items that have a National Stock Number (NSN). Most of the information needed for a DD 1348 is represented by Military Standard Requisitioning and Issue Procedure (MILSTRIP) code

Answer 21

DD Form 1348-6— This form is used to requisition materiel that cannot be identified by an NSN. It is usually more descriptive in nature and requires sources of supply, manufacturers’ parts code information, and applicable substitutes.

Question 22

DD Form 1149 (Requisition and Invoice Shipping Document)— This form is used as a requisition document and shipping document. It can be a local form for requisitioning single line or multiple line items of materiel.

Answer 22

DD Form 1155 (Order for Supplies and Services)—This form is an official purchase order document and is required whenever an open market order is placed with a vendor

Question 23

TYPES OF INVENTORIES
There are several types of inventories, each with a specific purpose. These types of inventory are controlled substances, bulkhead-to-bulkhead, specific commodity, special material, spot, velocity, random sampling, departmental, and war.

Answer 23

Controlled Substances

Conducted monthly, unannounced inventory done by members of the Controlled Substances Inventory Board

Question 24

Bulkhead-to-Bulkhead (Wall-to-Wall)
Conducted annually; is a physical count of all the material within a specific storeroom. It is conducted when a random sampling of that storeroom fails to meet the inventory accuracy rate of 90 percent, or upon custodian turn-over.

Answer 24

Specific Commodity Inventory
Physical count of all items under the same cognizance symbol or federal supply class (such as 6515/6505), or that support the same operational function (e.g., bandages, IV fluids, needles, etc.).

Question 25

Special Material Inventory Physical count of all items that, because of their physical characteristics, costs, or other reasons, are specifically designated for separate identification and inventory control. Special material inventories include but are not limited to stocked items designated as classified or hazardous. Physical inventory of such material is required on a scheduled basis, as prescribed in the NAVSUP P-485. NOTE: Medical supplies are examples of both the specific commodity and special material inventories.

Answer 25

Spot Inventory Unscheduled type of physical inventory verifying existence of a specific item. It is conducted when a requisition is returned showing the item is not in stock but the stock records indicate the item is on hand. A spot inventory is conducted when directed by higher authority or when a specific item has been found to be defective

Question 26

Location Surveys During spot check inventories the location accuracy should also be verified. Location surveys can be done as a separate action if desired. The goal is to have 98% of the actual stock locations match the recorded location in the inventory management system.

Answer 26

Velocity Inventory Required on items with a relatively high turnover rate. It is based on the premise that the faster an item moves the greater the room for error.

Question 27

Random Sampling Inventory Part of the annual scheduled inventory program. It is done to measure the stock record accuracy for a segment of material on hand.

Answer 27

Department Inventory Inventories held in departments or clinics are not carried on the Medical Logistics inventory records, but represent a considerable investment and are a valuable asset to the command. The goal is to keep enough stock on hand to meet routine and peak demands while holding the financial investment to the minimum.

Question 28

SAFETY All materiel must be stored in a clean and orderly manner, maximizing space and productivity, and ensuring an accurate inventory. The storage area must be kept clean. Aisles should be wide enough (generally 1.5 times the width of the largest cart or vehicle used) to permit easy passage by materiel handling equipment and must remain clear

Answer 28

Stack boxes evenly with labels facing the front. All containers marked with "UP" should be stored accordingly. Items should be stored off the floor; pallets may be used for this purpose. Sprinkler heads must be unobstructed. Boxes must be stored 18 inches below the sprinkler heads.

Question 29

Types of Documents Used in the Receiving Process Some forms used for ordering supplies will be used in the receiving process. Order for Supplies or Services/Request for Quotations (DD Form 1155) Request for Contractual Procurement (NAVCOMPT Form 2276), and Materiel Inspection and Receiving Report (DD Form 250) are used for inspection and acceptance of locally procured items. Upon receipt of a shipment, the appropriate purchase order/contract will be pulled and verified with the receiving document.

Answer 29

The Report of Discrepancy (ROD), SF 364 (Fig. 5-9), is the method by which activities report shipping type (issue) discrepancies and packaging discrepancies on the part of the shipper. It is filed with the DoD Supply System when a shipping type (item or packaging) discrepancy is found. The report serves two purposes: the customer is provided an exchange of items or financial reimbursement and the shipper is made aware that a physical distribution problem exists

Question 30

Stock Rotation To prevent deterioration of items, the oldest products should always be issued first. This is the FIFO (first in, first out) method. This is especially important when managing items marked with a shelf life code or expiration date. Non-expiration dated materiel is rotated by manufactured (MFR) date. This date can be found on the outside of the exterior pack or on the item.

Answer 30

In the bulk area, items are rotated from top to bottom; in other areas, materiel is pulled from front to back. For example: a box with an expiration date of 06/2011 will be placed on top, or in front of, a box with an expiration date of 11/2012. A box with a manufacture date of 04/2012 will be placed on top, or in front of another box with a manufacture date of 07/2014

Question 31

An active shelf life management program identifies stock that will expire prior to being used. A monthly surveillance check should be performed to verify the rotation of stock procedure is being implemented.

Answer 31

Stow compressed gases on the weather deck, or properly mounted in a shock resistant bracket, and securely fastened in a vertical position. Protect the cylinder valves from accumulations of dust, ice and snow, and screen the cylinders from direct rays of the sun.

Question 32

Store flammable liquids and bulk quantities in tightly covered containers in an approved flammable storage locker.

Answer 32

Reporting Unsatisfactory Equipment: Classifications of complaints are grouped in three classes and are as follows:  Type I: Materiel determined to be harmful or defective to the extent that use may or has caused serious illness or death.  Type II: Materiel, other than equipment, suspected of being harmful, deteriorated, or otherwise unsuitable for use.  Type III: Equipment determined to be unsatisfactory because of malfunction, design deficiency, defect, faulty materiel, workmanship, or performance. Equipment may be used unless the item presents a possible direct hazard (i.e., electrical shock, sharp edges, or other safety hazards

Question 33

Report Type I complaints immediately. Type II and III complaints are to be reported as soon as possible but not later than 10 days from the date of the incident

Answer 33

``` The three maintenance levels are as follows:  Level I (Performance Testing): Level I preventive maintenance is the responsibility of the equipment operator and consists of operator maintenance that is performed before, during, and after equipment usage. It is the basic maintenance required to keep equipment operating on a daily basis. This is performed by the personnel utilizing the equipment within the department. ```

Question 34

Level II (Preventive Maintenance): Intermediate maintenance relates to scheduled periodic (planned) technical inspection, lubrications requiring disassembly, replacement of worn or deteriorated parts, interior cleaning, calibration verification or adjustment, and verification of Level I performance. Level II maintenance is to be performed by a BMET or contracted service.

Answer 34

Level III: Consists of maintenance requiring complete overhaul of the equipment item and is considered depot-level maintenance or equipment manufacturer service center level maintenance. At command discretion, performance of Level III is permitted. Level III maintenance will usually result in extension of service life and should be documented in the appropriate service history.

Question 35

The AMAL/ADAL is the minimum amount of medical/dental material to be maintained by an operational platform or on order at any given time. Revisions are based on changes to the Federal Supply System, professional recommendations, and Type Commanders.

Answer 35

Contingency supply blocks contain dated, shelf-life, or deteriorative items such as pharmaceuticals, intravenous solutions, and prepackaged items. Dated items in the block must have an expiration date sufficiently far in the future to allow for a lengthy deployment (up to 6 months).